H.B. No. 2079 proposes significant changes to the Education Code by repealing provisions that require school districts to reduce local revenue levels that exceed entitlement. Specifically, it amends Section 12.013(b) to exempt home-rule school districts from adhering to limitations on local revenue levels under Chapter 49. The bill also clarifies funding provisions and eligibility criteria, allowing for adjustments in funding calculations and the treatment of local revenue levels in relation to state aid. By removing references to Chapter 49, the bill aims to provide school districts with greater financial flexibility and entitlement to additional state aid based on their local revenue levels and funding needs.

Additionally, the bill introduces new provisions for state aid for school districts affected by tax rate compression and modifies the calculation of taxable property values by the comptroller, eliminating previous requirements tied to Chapter 49. It also establishes a state contribution for group health coverage for employees of participating school districts and charter schools, which will be integrated into school finance formulas. The repeal of several existing provisions, including Chapter 49, is intended to streamline the legal framework governing school finance and taxation. The bill is set to take effect on September 1, 2025, marking a significant shift in the management of school funding and property taxation.

Statutes affected:
Introduced: Education Code 12.013, Education Code 12.029, Education Code 13.054, Education Code 25.081, Education Code 29.087, Education Code 29.203, Education Code 37.0061, Education Code 45.251, Education Code 45.261, Education Code 48.010, Education Code 48.252, Education Code 48.2543, Education Code 48.2553, Education Code 48.258, Education Code 48.260, Education Code 48.266, Education Code 48.267, Education Code 48.272, Education Code 48.2721, Education Code 45.003, Education Code 48.283, Government Code 403.302, Insurance Code 1579.251, Tax Code 48.275, Tax Code 21.02, Tax Code 312.210 (Education Code 29, Government Code 403, Education Code 25, Tax Code 21, Tax Code 312, Insurance Code 1579, Education Code 37, Education Code 45, Education Code 12, Education Code 48, Tax Code 48, Education Code 13)